Destashing is Not a Business Plan
If you own a boutique, you’ve likely heard of the term “destashing.” But what does it mean? And why should you avoid it? Put simply, destashing is when you have to resell wholesale products that didn’t sell to your customers. This is usually done in Facebook groups. Unfortunately, it’s not a sustainable business model, and if you’re consistently destashing items, it means you’re not buying the right wholesale products. Read on to learn more about why proper selection of wholesale products is so important and how to avoid the need for destashing altogether.
Why Destashing Isn’t Good For Your Business
Destashing isn’t just an annoyance; it can be detrimental to your business’s bottom line in several ways. Firstly, when you’re continually selling items that didn’t sell to your customers, you’re likely selling them at lower prices than you could have sold them for had they been popular in the first place. This means that instead of making a profit on those items, you might actually be losing money by having to sell them at discounted prices.
Additionally, the process of continually having to post, invoice and ship out the destash items can waste your time and energy while not making you any money. The more time spent selling destash stock means less time running your business or coming up with innovative ideas for marketing or expanding your products. These are all things that will help grow your business and make it more successful in the long run—something that’s much harder to do if all your energy is devoted to selling off old stock every month.
How to Avoid Destashing Altogether
The key to avoiding destashing is simple: Choose wholesale products wisely! Before investing in any product, consider whether there’s a demand for it from your target audience — if there isn’t, then don’t buy it! Additionally, look into trends (especially seasonal ones) before stocking up on any item — this will help ensure that whatever products you purchase will actually sell during the timeframe when they’re most relevant and desirable. Finally, always strive to create unique collections of items — no one wants to buy something they can get at Target from a boutique! By doing these three things, destashing should become a thing of the past for your boutique business!
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